Aug
NZ dollar rise on weaker US dollar; bonds firm
The New Zealand dollar <NZD=> rose on Thursday as the U.S. currency came under pressure on receding expectations of a rate cut in the euro zone.
* NZ dollar pushes up to a session high of $0.7068 <NZD=D4> in local trade, extending gains made the previous day on data showing a rebound in business confidence.
* U.S. dollar slips from six-month highs versus the euro <EUR=> after European Central Bank executive board member Axel Weber, widely considered one of the most influential ECB policy-makers, says that any talk about lower rates in euro zone was premature.
* Finance Minister Michael Cullen says New Zealand’s economy is facing serious challenges caused by tight global credit conditions and soaring commodity prices [nWLF001038]. Kiwi little moved on the comments.
* NZ dollar mostly steady against Aussie <NZDAUD=R> but gains against the yen <NZDJPY=R>.
* Support for kiwi seen around $0.6970 and resistance at $0.7050, with a weaker U.S. dollar expected to set the tone.
* NZ bonds firm along the longer end of the curve, reflecting gains in U.S. Treasuries on safe-haven buying.
* NZ two-year swaps <NZIRS> little changed at 7.27/30 percent compared with 7.29 percent the previous day.
————-Aug 28 snapshot at 2.10 p.m. (0210 GMT) ———–
(figures in brackets are from Aug 27)
90-DAY BILLS (SEP) 91.97 (PREV 91.96) 90-DAYS 8.56 (PREV 8.16)
90-DAY BILLS (DEC) 92.35 (PREV 92.36) 07/09 6.83 (PREV 6.83)
90-DAY BILLS (MAR) 92.65 (PREV 92.67) 11/11 6.11 (PREV 6.13)
NZD TRADE WEIGHTED 65.81 (PREV 65.26) 04/13 6.03 (PREV 6.10)
NZD/USD 0.7060/66 (PREV 0.6982/96) 12/17 6.01 (PREV 6.03)
NZD/AUD 0.8146/59 (PREV 0.8143/56) RBNZ MCI+ 827 (PREV+ 787)
NZD/EUR 0.4772/90 (PREV 0.4747/53) US 10-YR 3.78 (PREV 3.78)
NZD/JPY 77.27/39 (PREV 76.29/41) AU 10-YR 5.76 (PREV 5.75)
***SPREADS: NZ/US 10-YR +223 (+225) NZ/AUS 10-YR +25 (+28)***
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Source: http://www.afxnews.com
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